How to Work with Real Estate Agents for Creative Financing Deals
When people first get started as real estate investors, it’s pretty common for them to go straight to real estate agents to get their deals.
Guys, this is not the way to get deals.
This isn’t to say that you can’t and shouldn’t work with real estate agents; you all know that I’m married to a very hot real estate agent (my beautiful wife Laura).
However, there are better ways to not only get better real estate deals, but better ways to work with real estate agents as an investor.
Working with Real Estate Agents to Find Creative Financing Deals
So how do you work with a real estate agent for real estate investments?
First and foremost, if you start your real estate investment by going to realtors first, then I already know that you aren’t talking to motivated sellers.
By that I mean, you aren’t going to motivated or distressed sellers; instead, you’re going to places like Zillow and looking for a deal.
Creative financing, such as using subject to or seller finance, is better used when speaking directly to sellers.
Going through a realtor, the efficiency of that process is incredibly low; the realtor is the gatekeeper to that property.
I actually explained this during one of my Daily DM videos:
Guys, the reason why off-market deals – especially when done with creative finance – get the biggest returns is because we are solving a problem for the seller.
If you’re first thought is to go to a real estate agent, that tells me that:
1. You aren’t doing marketing
2. You don’t have the budget to do marketing
3. You don’t have a lead flow from other sources
And I get it – you’re brand new to the business and traditionally, going to a realtor would be the way to go.
Again, there’s nothing wrong with working alongside real estate agents, but you have to work with them on a relationship basis.
I work with a lot of agents that know any properties they get that are low equity or “trash” deals, they can always come to me.
Even if it’s out of my wheelhouse, I can still find a cash buyer and then I split the profit with the agent.
So, if you do want to work with a real estate agent, this is how to do it and what to say –
“Hi, real estate agent. My name is Pace Morby and I’m working in real estate as a fix and flipper, some wholesale, and I also do creative finance.
“If you ever run into or have a house that is a bit beat up, I might be a buyer for that property. I can also give you the listing if you sell the property to me.
“If you ever run into a seller who wants to get rid of a property, a property that is too trashed, or something that you don’t want to list, this would be a great opportunity for us to wholesale this.”
That’s how you can start building relationships with agents.
I go through a lot of these types of questions and scenarios whenever I do a Mastermind and the next one is coming up this summer.
If you want to know the systems and processes that I use to get my deals and how I scale my business, then mark those calendars and get your seat!
I’ll see you there!